Annual Report 2017
Year ended March 31, 2017

Industrial Products

Ceramics & Materials

Tabletop

EngineeringProfileNoritake Co., Limited, including its subsidiaries and associates(Hereinafter “The Noritake Group”, “The Group” or simply “Noritake”)
has developed technologies acquired from ceramics manufacturingexpertise and has expanded its business into such fields as grinding andpolishing tools, electronic component materials and manufacturing equipment.
With a focus on developing new products and technologies forenergy-related industries—including solar cells, an area of promising growth—
Noritake seeks to create new value for customers and society.
New Mid-term Business Plan
Slowing growth in China and other emerging economies has become more
pronounced since 2015. Many developed economies, including Japan, are trending
downward, and the business environment is forecast to remain severe. Amid thesecircumstances, the Group launched its 10th Mid-term Business Plan and willcontinue working diligently to ensure its successful implementation.
Management Issues:
In the rapidly changing and increasingly competitive global market, we aim toestablish a business and management infrastructure that will safeguard stableearnings and growth.
Management Goals:
Over the long term, we aim to maintain sales growth of 5% per year; operating
margin of 5%; overseas sales ratio of 50%; ROE of at least 5%; and a capital ratio ofat least 50%.
Basic Strategies:(1) Expand market share and break into new markets by promoting sales
activities that unite manufacturing, sales and technology.
(2) Enhance competitiveness and expand sales by developing new products
and technologies.
(3) Penetrate overseas markets and upgrade overseas manufacturing bases toexpand business.
(4) Promote an efficient management structure and upgrade infrastructure.
Contents

1 Six-Year Financial Summary
2 Message from the Management
5 Review of Operations
9 Topics
10 Research & Development
12 Corporate Governance
15 Consolidated Financial Review
18 Consolidated Balance Sheets
20 Consolidated Statements of Income / Consolidated Statements of Comprehensive Income
22 Consolidated Statements of Changes in Net Assets
24 Consolidated Statements of Cash Flows
26 Notes to Consolidated Financial Statements
56 Report of Independent Auditors
58 Overseas Network / Members of the Board, Audit & Supervisory Board Members and Executive Officers
59 Corporate Data / History of NoritakeS

i x - Y e a r f i N a N c i a l S u M M a rY
Years ended March 31,

Millions of yen

Thousands of
U.S. dollars

2017

2017

2016

2015

2014

2013

2012

¥108,808¥109,631¥ 99,038¥ 88,687¥ 90,235¥102,152

Operating income

3,119

3,449

2,191

785

64

1,880

27,857

Income before income
taxes and minority interests

5,263

5,684

3,100

2,485

2,693

5,972

47,000

Profit attributable to ownersof the parent

4,107

4,413

2,059

1,313

1,644

4,468

36,679For the year:
Net sales

Net income per share(yen/U.S. dollars)$

971,509¥ 286.12¥¥142,362¥135,932¥145,836¥118,774¥114,419¥117,735$ 1,271,089

Total net assets

87,12579,76682,817

69,217

66,58068,896

777,911

Capital ratio (%)

59.0

56.5

54.1

57.8

57.7

51.5

59.0

307.32

¥

14.34

¥

8.91

¥

11.02

¥

$

31.99

2.55

At year-end:
Total assets

Notes: 1. U.S. dollar amounts have been translated at the rate of ¥112 to US$1.
2. The Company conducted a reverse stock split at a ratio of one share for every ten shares on October 1, 2016. Figures for net income per share are presented on theassumption that the Company conducted the reverse stock split at the beginning of the previous fiscal year (April 1, 2015).

Net Sales

Operating Income(Millions of yen)

(Millions of yen)

Net Income per ShareProfit Attributable to
Owners of the Parent(Yen)(Millions of yen)

108,808
109,6313,449

99,038

307.3

4,413
4,107

3,119

286.1

88,687

2,191
2,060

14.34

1,313

8.91

785

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Note: Most financial figures in the first 17 pages of the report have been rounded down and are presented on the basis of financial reports filed with the Kanto Finance Bureau. Due tothis basis, some line items and categorizations may differ from the Consolidated Financial Statements and Notes presented on pages 18 to 55 of this report.

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Annual Report 2017

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M

eSSage froM the MaNageMeNt

The management of Noritake Co., Limited wishes to express its gratitude
to all stakeholders for their continued support.
We would like to take this opportunity to comment on the Group’s results
for fiscal 2017, ended March 31, 2017.

2

Hitoshi Tanemura

Tadashi Ogura

Chairman &Representative Director

President &Representative Director

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Annual Report 2017

Performance overview for fiscal 2017

Fiscal 2017 began with the Japanese economy stalled, primarily due to the strong
yen. In the latter half of the fiscal year, however, the domestic economy regained its
vibrancy, especially for exporters, owing mainly to a weaker yen following the U.S.
presidential election in November.
Overseas, the U.S. economy remained firm on expectations for the new administration, while the European economy remained stable overall despite concerns
regarding the impact from BREXIT. Near the midpoint in fiscal 2017, the global
economy overall began to recover, with China maintaining firm economic growth
despite a slowing growth rate.
Amid this economic environment, our manufacturing, marketing and technology
forces strengthened alliances, and the Noritake Group as a whole continued tofocus its efforts on key initiatives for the first year of the 10th Mid-term Business
Plan: expanding market share, cultivating new markets, developing new technologies and products, penetrating overseas markets and upgrading overseas
manufacturing bases, and promoting an efficient management structure andupgrading infrastructure.
As a result, net sales fell 0.8% year on year to ¥108,808 million. Looking at earnings, operating income stood at ¥3,119 million and ordinary income amounted to¥4,861 million.
To expand sales and realize the development of new technologies and products,
we focused efforts in the electronic paste business on developing new products for
inductors and cultivating new demand. In the ceramics business, we developednext-generation products for ceramic catalyst carriers. Our subsidiary KCM
Corporation developed fuel cell materials and other new products. In theEngineering Group, we devoted attention to developing and commercializing
devices such as kilns and dry furnaces suited to new materials.
In terms of penetrating overseas markets and upgrading overseas manufacturingbases, we enhanced our production and sales structure, aligning it better with
regional demand. We are working to build a global business promotion structure.
In regards to enhancing management infrastructure, the back-office sections
and production sites are working together to strengthen manufacturing, improve
services and quality assurance, make operations more efficient and reduce costs.
In addition, we are actively engaged in activities to ensure compliance, health andsafety, and environmental protection. In regards to the former site of the headquarters’ plant, we decided to complete the transfer of land around March 2018.

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Annual Report 20173

Basic Policy regarding earnings Distribution

Noritake has positioned returning profit to shareholders as a key management policy. Based on this policy, we place emphasis on stable dividend payments over thelong term and the distribution of earnings by comprehensively taking into consideration factors that include performance results, financial conditions and future business development. In addition, we make effective use of retained earnings forinvestment aimed at creating new technologies and products that can become afoundation for the Noritake Group’s future strength, as well as for investment forsustainable business development in growth fields. With regard to dividend payments, Noritake distributed a fiscal year-end dividend of ¥30 per share. Prior to theyear-end distribution, Noritake implemented a 1-for-10 reverse stock split on
October 1, 2016. Calculated on a post reverse stock split basis, the full-year
dividend amounted to ¥60 per share. In fiscal 2018, Noritake plans to maintain afull-year dividend of ¥60 per share.
Through the concerted efforts of the Noritake Group to steadily implement the core
strategies of the 10th Mid-term Business Plan, Noritake aims to create a growth trajectory highly responsive to changing times.
We ask for the continued understanding and steadfast support of our stakeholders.

Hitoshi Tanemura
Chairman & Representative Director

Tadashi Ogura
President & Representative Director

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re v i e w o f o P e r at i o N S

Industrial Products

Vitrified bonded wheel for guide-rail
grinding “LIFE kING TA3”

Business Status

Breakdown of Sales

In the domestic market, the automotive, steel

yen and the Kumamoto earthquake. They
began to recover in the latter half. Overseas,In product development, we will concentrate

and bearing industries stagnated in the firsthalf of the fiscal year due mainly to a strong

Business Strategy
on launching new products in key fields,

52.4

including automobiles, electronics, semicon-%

ductors, bearings, and healthcare. In marketing, we will revise our sales structure in Japan

while sales were firm for steel and automotive

to increase efficiency and, overseas, we will

applications in China, the U.S. market finishedstrengthen our sales capabilities and promote

the year weak. As for Nippon Resibon

Salesmarket development. In manufacturing, we will

Corporation, demand from Asia, including India(Millions of yen)work to further reduce costs in Japan while,and Indonesia, and from the Middle East

57,193overseas, we will strive to improve earnings by

57,015remained robust despite being impacted byraising utilization rates at plants in Thailand andexchange rates.

China.

As a result, consolidated net sales of theIndustrial Products Group declined 0.3% year
on year to ¥57,015 million.

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e v i e w o f o P e r at i o N S

Ceramics & Materials

Ceramic catalyst carriersBusiness Status

S

Breakdown of Sales

ales of electronic pastes for use in multilayerof vacuum fluorescent displays (VFDs)

which have yet to gain traction, to develop the mar-In regard to electronic pastes, we areceramic capacitors declined in Japan. Sales

remained weak due to the strong yen and efforts,

Business Strategy
working to expand sales for electrode

25.7

%

applications, such as for inductors. As

for thick film circuit substrates, we will
enhance our manufacturing structure while

ket for new capacitive touch switch module prod-

expanding sales to LEDs and other mar-ucts. Sales of gypsum remained strong inkets. For catalyst supports, we will enhance

shipments overseas despite the impact fromSales

our structure to accept a growing number

exchange rates. Sales of thick film circuit substrates(Millions of yen)of orders and develop new next-generationand ceramic cores remained on par with the previ-

28,846

products. KCM Corporation will work to

ous year. Sales of ceramic catalyst carriers expand-

27,976develop particulate material for multilayer

ed significantly thanks to praise from overseas

ceramic capacitors, raw materials for fuelcustomers for newly developed products. KCM

cells, and other products.

Corporation’s sales remained flat as sales ofElectronic Ceramic Materials offset a decline in
Ceramic Materials.
As a result, consolidated net sales of the
Ceramics & Materials Group declined 3.0% year on
year to ¥27,976 million.
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re v i e w o f o P e r at i o N S

Engineering

Roller hearth kiln for
lithium-ion batteries

Business Status

Breakdown of Sales

S

ales of mainstay dry-furnaces anduse in the conventional fields of elec-

as well as in the new field of automotive com-and kilns, we will promote development of

13.4

%

ponents. In addition, large orders in thechemicals and food products while sales

new product development in automobile
We will develop new applications for mixing

Sales

equipment and work to cultivate new markets(Millions of yen)for filtration equipment. We will also work to

14,606

expand sales of new products in the area ofstagnated for filtration equipment for bearings.
Overseas demand for carbide tipped circular

products to extend our differentiation in

the field of battery materials and will promote
related fields.

smartphone field contributed to sales. Salesof mixing equipment were firm for use inIn our mainstay business of dry furnaces

kilns increased due to strong sales fortronic components and lithium-ion batteries

Business Strategy

13,491

carbide tipped circular sawing machines.

sawing machines remained weak.
As a result, consolidated net sales of theEngineering Group rose 8.3% year on year to¥14,606 million.

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Tabletop

THE HOMAGE COLLECTION

Business Status

I

Breakdown of Salesn Japan new products for airlines andrestaurants remained depressed while sales
to department stores slumped. Turning over-I

n Japan, we aim to expand sales ofother fields garnered acclaim and sales
remained strong while sales to hotels andBusiness Strategy
business-use tableware, targeting the hotel

8.5%

and restaurant market in anticipation ofmarket expansion being brought about by
increasing numbers of foreign visitors and theseas to the United States, sales to our main-2020 Tokyo Olympics. Overseas, westay customers were sluggish. In Asia and thelaunched new products in the United States

Middle East, sales expansion did not materialize. In addition, sales declined on the impact
of exchange rates.

Sales(Millions of yen)

Asian markets where growth is expected, weare strengthening our sales structure and10,101

As a result, net sales of the Tabletop Groupand aim to recover sales. In India and other

9,211

working to expand sales.

declined 8.8% year on year to ¥9,211 million.

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Annual Report 2017

t

oPicS

1.

High-Performance Vitrified-Bonded Wheels for
Precision Grinding “LIFE KING”

The “LIFE KING” brand of bonded grinding wheels was developed by combining resilient grain with long-lasting bonds. Its strengths are excellent shaperetention and sharpness as well as long life. At present, the wheels are used
for grinding metal components in a wide range of fields, including industrial
and medical uses. Many customers have given it high marks, especially for
grinding rail parts for transport devices and grinding gears for automotivetransmissions.

2.

Developed Components for Direct Ammonia Fuel Cells

We developed ceramic cells and sealing glass for direct ammonia fuel cells
that can use carbon-free ammonia (NH3) as fuel. Feeding ammonia, instead ofhydrogen, directly to conventional fuel cells creates a problem: the cell andsealing glass corrode. We developed ceramic cells and sealing glass fromproprietary materials that do not wear down from direct contact with ammonia. Hydrogen (H2) for hydrogen fuel cells is usually produced from city gas(CH4), but that process produces carbon dioxide (CO2). By directly utilizing
ammonia that contains hydrogen ions (NH3), we can realize carbon-free power
production that does not emit CO2.
Furthermore, compared to other liquid fuels like liquid hydrogen, ammonia
fuel can be condensed and stored as a liquid at room temperature. Thismeans it is much cheaper to store and transport, making it highly economical
due to the already existing infrastructure.

3.

Sealing glass

Ceramic cell

Developed Vivid Red and Orange Paints that Do Not
Contain Harmful Substances

Vivid reds and oranges are used in many national flags and logos. These colors are also difficult to reproduce exactly as initially intended because slightvariations strongly affect the final image. High temperature calcination is needed to paint on porcelain, but the heat makes it difficult to reliably produce thesekinds of colors. To overcome this, paints conventionally contained substances
harmful to people and the environment, such as selenium and cadmium.
With the aim of increasing safety, Noritake developed new paints that do notcontain selenium or cadmium. These paints can be used for more than justporcelain. Applications are expected to be developed for use as colored pigments in other products manufactured or used at high temperatures.

4.

LIFE KINGROSA ROSSAAKE KOMON

Held Grand Reopening of Lifestyle Shop Noritake
Square Nagoya

In conjunction with the redevelopment of the former site of the headquarters’
plant, we moved the tableware store Noritake Square Nagoya to the red brickbuilding in the Noritake Garden in August 2016.
As we offer comfortable living that extends from the dining room table, theshop’s concept is DIAMOND DAYS and it displays many coordinated items,
including Noritake tableware. Inside the store, we hold events related to everyday living and, at the café, we demonstrate how a wide variety of tableware
can be used.
Noritake Square Nagoya
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Annual Report 20179reSearch & DeveloPMeNt

The R&D activities of the Noritake Group primarily revolve around the Research and Development Center, which isprincipally involved in basic research, and the Products Development Center, which promotes the commercializationof projects that are directly connected to the business divisions. Noritake carries out product development for new
technologies and new fields in collaboration with each business division and Group company.
The R&D expenditures of the Noritake Group amounted to ¥2,443 million in the fiscal year under review.

R&D for New Products
and Technologies
Noritake focuses on developing new products, especially focusing on the

R&D Expenditure(Millions of yen)development in the field of environment and energy and the developmentof element technology, by utilizing its powder synthesis, formation, calci-

2,971

nation and fabrication technologies while expanding the applications of

2,797
2,443

such technologies. Noritake actively promotes joint R&d and technological exchanges with outside companies, universities and research institutions. At the same time, we participate in government projects and otherrelated activities. Through these initiatives, Noritake’s R&d team works inunison with each Noritake business segment to undertake strategic R&dwith a long-term perspective. Highlighting this commitment, Noritake wasawarded the “Super –innovative components for manufacturing” grand

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prize for its development of sealing glass for fuel cells.
Core basic R&d expenditures totaled ¥655 million.

Industrial ProductsTo respond to expanding sectors and market
changes, Noritake has been focusing its efforts
on strengthening its development capabilities by
relying on basic technologies and developing differentiated products. Noritake is augmenting the development of ecologically friendly tools in such growth areas
as magnetic materials for automotives and LEDs. In thetransportation equipment field (which includes automobiles, railways and aircraft) and also in the medical field,
we are promoting the development of higher performance, lower-cost products with the aim of addressing
market changes.
The R&D expenditures in the Industrial Products
segment amounted to ¥511 million in the fiscal year
under review.

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Ceramics & MaterialsIn electronic materials, the Ceramics & Materials
segment is developing insulating and electrodepastes mainly for ceramic substrates used inLEDs, electrode pastes for touch panels, and electrode pastes for electronic components installed insmartphones and tablet PCs.
In ceramics, we developed and promoted theongoing marketing of high performance ceramic catalyst carriers for chemical plants and thick-film, multilayer substrates for automobiles and LEDs. We also
developed “°C Monarc”, a ceramic core used inprecision casting that features superior heat resistance.
KCM Corporation is advancing the development of particulate material compounds for use in the growth field of multilayer ceramic capacitors, zirconium materials and materials
used in fuel cells.
In VFD tubes and VFD module products, we are currently
developing VFD message displays, mainly used in stores,
information and reception displays in public places, anddisaster-related wireless systems.
The R&D expenditures in this segment were ¥1,113 million.

EngineeringThe Engineering segment conducts research into products and equipment for future growth fields that
include energy, electronics and automotive products.
The R&D expenditures in this segment amounted to¥75 million.

TabletopT

he Tabletop segment continues to work to develop
new decorating technology and materials related totableware.
The R&D expenditures in this segment totaled ¥87 million.

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co r P o r at e g o v e r N a N c e(1) CORPORATE GOVERNANCE STRUCTURE(i) Overview of corporate governance structure
Comprising its corporate governance structure, Noritake has
positioned the Board of Directors as the body that decides onimportant matters, including the management’s basic policy
and those stipulated by the law. Noritake has also introduced
an executive officer system to clarify executive responsibilities
and to delegate authority with the objective of further reinforcing
the execution of business based on decisions made by the
Board of Directors. Having executive officers involved in business operations come on board, the Board of Directors meets,in principle, once a month to ensure uniformity of understanding
across the entire Group. Furthermore, such matters as surplus
dividends and items stipulated in Article 459-1 of the Company
Law are addressed as matters for resolution by the Board of
Directors, unless otherwise stipulated by law, with the aim ofbeing able to flexibly return profits to shareholders.
With regard to important management matters, Noritake has
established a structure to realize quick, accurate decision-making after careful deliberation at the Executive Council, whichmeets weekly, in principle.
Directors are elected at the Company’s Annual General
Meeting of Shareholders, which is attended by at least onethird of the shareholders with exercisable voting rights, and after
a majority of said voting rights is obtained, although not by
cumulative voting. Noritake limits the number of directors to 18.
The tenure of directors at Noritake and the Group has been set
at one year. The purpose of this system is to make possible theactive building of a management structure optimally suited to
today’s turbulent business environment and to clarify management responsibilities anew with each fiscal year.
In accordance with Article 426-1 of the Company Law,
Noritake decided that it would be able to exempt directors andAudit & Supervisory Board Members (including former directors
and Audit & Supervisory Board Members) by Board of
Directors’ meeting resolution, from liabilities for damages
incurred as a result of the execution of their duties, within thelimit of laws and regulations, with the aim of having them fully
perform the roles expected of them.
Noritake aims to affect smooth operations by reducing thequorum necessary for extraordinary resolutions at the General
Meeting of Shareholders. Resolutions proposed for approval at
the Company’s Annual General Meeting of Shareholders, inaccordance with the provisions of Article 309-2 of the Company
Law, must be ratified by a two-thirds majority vote of shareholders in attendance whose total voting rights account for onethird or more of all exercisable voting rights.

12

Although the establishment of other governance structures(e.g. “company with committees” and “company with aSupervisory & Audit Committee”) is recognized, Noritake decided to use the Audit & Supervisory Board system.
(ii) Reasons for applying corporate governance system
With the advancing globalization of business, the effects of corporate activities are being held to increasingly strict standardsof corporate social responsibility. Each Group executive andemployee is heir to the spirit of Noritake’s founder, on whichbasis the Noritake Group Statement of Corporate Ethics wasformulated. In observing and putting that statement into practice, they apply this corporate governance structure to realize a
Noritake Group with even higher standards of corporate ethics.
(iii) Status of internal control system upgrades
Since fiscal 2008, the Noritake Group has been working tobuild and maintain a framework in which it forms project-based
structures, advances the documentation of adherence to rules
and operational processes, and addresses the systemization ofinternal controls related to financial reporting. Furthermore, withregard to the stipulation of internal control rules, and the statusof their maintenance and implementation, Noritake conducts
monitoring from the perspective of the risk of material misstatements related to financial reporting, among other measures, as
it strives to preserve and improve its internal control system.
Through the Compliance Committee and the activities of
persons appointed to have compliance responsibilities under
the committee’s authority, the Company is working to bolster its
internal controls system from the compliance standpoint.
Furthermore, at the Board of Directors’ meeting held on
May 12, 2015, Noritake resolved to revise its basic policy on
establishing an internal controls system. The main revisions
were to adopt clear, concrete terms in describing the system toensure the appropriateness of the Group’s operations and audit
system, in line with a reassessment of the Group’s current
needs, as well as revisions to laws and regulations.
(iv) Status of risk management system upgrades
Strengthening the ongoing compliance structure of the Group
as a whole, Noritake works to maintain risk management systems to prevent the Group from entering into a crisis situation
due to misconduct associated with the violation of the law.
Should the Group be faced with any risk that might damage
its corporate value, such as a case of misconduct, an accident
or disaster, “Risk Management Regulations” have been formulated to minimize losses and to enable operations to continue
with minimal disruption. In the event that a crisis does arise, atask force will be established in immediate response.
(v) Status of system to ensure the appropriateness ofoperations at subsidiaries
To ensure the appropriateness of operations at its subsidiaries,
the Company is taking measures to ensure legal and regulatorycompliance through the activities of the Compliance
NORITAkE CO., LIMITEd

Annual Report 2017

Committee, as well as by promoting awareness of and compliance with the Noritake Group Statement of Corporate Ethics. In
addition, the Company has established internal controls andworks to ensure the appropriateness of financial reporting by,
for example, continually monitoring the adequacy and implementation of these internal controls.
(2) STATUS OF INTERNAL AUDITS AND AUDITS BY AUDIT& SUPERVISORY BOARD MEMBERS AND
INDEPENDENT AUDITORSThe Audit Office serves as the Company’s internal audit department and implements operational and accounting audits. Audit
results are reported to the divisional head and the general manager in charge of business operations, and, in the event thatany significant problems are identified, the Audit Office isrequired to notify the Executive Council.
The Audit & Supervisory Board is composed of two full-time
Audit & Supervisory Board Members and two outside Audit &Supervisory Board Members. Besides stipulating such matters
as audit guidelines and the division of duties, the Audit &Supervisory Board receives reports from each Audit &Supervisory Board Member providing the actual audit status
and results, and expedites the flow of information between the
Board of Directors and the Audit Office. In addition to working
to gather information, Audit & Supervisory Board Members
attend meetings of the Board of Directors and Executive
Council as well as other important meetings, where they receive
status reports on the execution of executives’ duties and ask
for explanations when the need arises. Furthermore, the Audit &Supervisory Board, in addition to confirming that Noritake’s
accounting auditors maintain their independence and implement the appropriate audits, receives status reports from theaccounting auditors on the execution of duties and requests
explanations when the need arises.
The Audit Office works in close collaboration with Audit &Supervisory Board Members and accounting auditors to maintain the effectiveness of internal audit implementation. As established by contractual ties, Noritake’s independent auditor is
KPMG AZSA LLC, which assigns managing partners to
Noritake to implement audits from an independent perspective.
In the fiscal year under review, the managing partners assigned
to Noritake by KPMG AZSA LLC were as follows:• Specified employees and managing partners
CPA Yasushi Yokoi
CPA Hiroyuki Okuya
CPA Satoshi Zengame• Assistants
39 CPAs and 22 others

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Annual Report 2017(3) OUTSIDE DIRECTORS AND AUDIT & SUPERVISORY
BOARD MEMBERS
Noritake has two outside directors and two outside Audit &Supervisory Board Members.
No personal, capital or business relationships or other conflicts of interest exist between the Company and its outside
Audit & Supervisory Board Members Ryuichi Murata andTatsuhiko Saruwatari, and its outside directors Kosaku Yamada
and Tetsuo Komori, respectively. Tetsuo Komori owns 700
shares of Noritake, but this is not deemed to present a conflictof interest.
The outside directors bring a wealth of experience and broad
insight regarding business management. They were hired to provide thorough counsel on matters spanning the entire businessto the Board of Directors in an effort to strengthen oversight andincrease transparency in the decision-making process.
Furthermore, the outside Audit & Supervisory Board
Members reflect their wealth of experience and broad insight asbusiness administrators in Noritake audits.
When outside directors oversee business operations orwhen the outside Audit & Supervisory Board Members conduct
operational audits, they may conduct internal and corporate
audits as needed in addition to collaborating with accounting
auditors and the internal control department through suchmeans as the appropriate sharing of information and exchangeof opinions.
Together with the two full-time Audit & Supervisory Board
Members, the outside Audit & Supervisory Board Members aremandated to audit the directors in the execution of their duties
and the operations and assets of Noritake and its subsidiaries.
In addition, the outside Audit & Supervisory Board Members
conduct audits based on reports received from the independentaccounting auditors regarding the Company’s consolidated
financial statements. In addition, working closely with the Audit
Office, the outside Audit & Supervisory Board Members contribute to efficient internal audits.
The Company appoints outside directors and Audit &Supervisory Board Members with the expectation that they will
perform their oversight duties and audits in an appropriate andobjective manner based on their specialized knowledge.
Although the Company’s rules and regulations do not stipulate
the independence of outside directors and Audit & Supervisory
Board Members, we appoint them in line with our basic philosophy that they have no conflict of interest with ordinary
shareholders.
The Company concludes limitation of liability contracts witheach outside director and Audit & Supervisory Board Member
in accordance with the provisions of Article 423-1 of theCompany Law. As such, the maximum amount of liability
stipulated by the aforementioned contracts is the minimum
amount determined by law.
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With regard to management and decision-making functions
as well as its Board of Directors, which fulfills the management
oversight function in terms of the business execution of its
directors, Noritake strengthens management oversight by having two of four Audit & Supervisory Board Members from outside the Company. In corporate governance, Noritake places
the utmost importance on external, objective and neutral management oversight functions. The external management oversight function is adequately performed by the system that is inplace with the two outside Audit & Supervisory Board Members.
Noritake has appointed two outside directors to further secure
the oversight function of the Board of Directors as well as
ensure transparency in the decision-making process.

Compensation Total Compensation by Type
Amount(Millions of yen)
(Millions of yen)
Basic
Stock
Compensation Options

Performancebased stockcompensation

Directors (excl.
outside director)

351

310

—

—

41

7

Audit & Supervisory
Board Members(excl. outside Audit& Supervisory
Board Members)

40

40

—

—

—

2

Outside directors
and Audit &Supervisory Board
Members

36

36

—

—

—

6

(ii) Policy details and decision-making process withregard to executive compensation and its methodsof calculation
The compensation of the Company’s directors comprises fixedmonthly compensation and performance-based stockcompensation.
After hearing the opinions of the outside directors and Audit& Supervisory Board Members, the representative directors
determine the appropriate amounts of fixed monthly compensation by executive officer category within the limit*1 approvedby the meeting of shareholders. These amounts are then finalized at the Board of Directors’ meeting.
The performance-based stock compensation is decided
based on the rules regarding the issuance of shares and inaccordance with such factors as the achievement of
medium- to long-term corporate performance targets, within thelimit approved by the meeting of shareholders.
Furthermore, outside directors only receive fixed monthly
compensation in consideration of the role they play in supervising management from an independent position.

14

June 28, 1990, the decision was taken to limit Noritake’s total executive compensation to ¥40 million or less per month for directors.
2. At the 109th Annual General Meeting of Shareholders, which was held on
June 28, 1990, the decision was taken to limit Noritake’s total executive compensation to ¥6 million or less per month for Audit & Supervisory Board
Members.

(5) DETAILS OF COMPENSATION PAID TO INDEPENDENTAUDITOR, ETC.
(i) Details of independent auditor compensation, etc.
Previous Consolidated
Accounting Year

Consolidated Accounting
Year under Review

Compensation
Compensation
Compensation
Compensation
Based on Audit
Based on Non- Based on Audit
Based on NonCertification Services Auditing Services Certification Services Auditing Services(Millions of yen)
(Millions of yen)
(Millions of yen)
(Millions of yen)

No. ofOfficers
Eligible

Bonus

Notes: 1. At the 109th Annual General Meeting of Shareholders, which was held on

Category(4) COMPENSATION TO DIRECTORS AND AUDIT &SUPERVISORY BOARD MEMBERS(i) Total executive compensation by executive officer
category, total compensation by type, and number ofofficers eligible
Executive
Officer
Category

Audit & Supervisory Board Members only receive fixedmonthly compensation decided by deliberations of the Audit &Supervisory Board Members within the limit approved by themeeting of shareholders.*2

Parent company

70

—

70

—

Consolidated
subsidiary

17

—

17

—

Total

87

—

87

—

(ii) Other significant details regarding compensation
Noritake Co., Inc., a Noritake subsidiary, paid compensation
based on audit certification services of ¥8 million to KPMG LLP,
which belongs to the same corporate network as theCompany’s independent auditor, in the consolidated accounting
year under review. In the previous consolidated accounting
year, the amount for such services had totaled ¥9 million.
(iii) Details of non-auditing services provided to theCompany by the independent auditor
In the year ended March 31, 2017, there were no relevant
items.
(iv) Policy for determining compensation to independent
auditors
The Company calculates compensation to be paid to its CPAs,
etc. taking into account such factors as the number of days of
the audit and the special characteristics of Noritake’s size andoperational characteristics.

NORITAkE CO., LIMITEd

Annual Report 2017

co N S o l i D at e D f i N a N c i a l r e v i e w

SCOPE OF CONSOLIDATION
Composed of 25 subsidiaries and 7 associates,
the Noritake Group is engaged in the manufacture and sale of products in four business segments—Industrial Products, Ceramics &Materials, Engineering, and Tabletop—as wellas the provision of services related to thesesegments.
INDUSTRIAL PRODUCTS SEGMENT
In the Industrial Products Segment, grinding
wheel manufacturing and fabrication are performed by five subsidiaries and two associates
in addition to the Company, while diamond tool
manufacturing is undertaken by one subsidiaryin addition to the Company. Coated abrasives
are produced by the subsidiary Noritake
Coated Abrasive Co., Ltd. and one associate; aportion of these items are supplied to theCompany.
In addition to the sales activities of theCompany and one subsidiary in Japan andoverseas, the Industrial Products Segment’s
domestic sales are handled by Zen Noritake
Co., Ltd. and one other subsidiary. The U.S.based Noritake Co., Inc. and three other subsidiaries undertake sales in overseas markets.
Noritake Coated Abrasive Co., Ltd. conducts
direct sales of most of these products both inJapan and overseas.
CERAMICS & MATERIALS SEGMENT
In the Ceramics & Materials Group, manufacturing of electronic paste and thick film circuit
substrates is conducted by the Company. Such
activities are bolstered by P.T. Noritake
Indonesia along with one subsidiary and one
associate. VFD tubes are produced and supplied to the Company by the subsidiary
Noritake Itron Corporation. In addition, the subsidiary KCM Corporation and its subsidiaries
produce ceramic raw materials, a portion ofwhich are supplied to the Company.
In addition to the Company’s own sales
activities for electronic paste and other ceramic
products of the Ceramics & Materials Group,sales activities for VFD tubes and related products, both domestic and overseas, are mainly

NORITAkE CO., LIMITEd

Annual Report 2017

conducted by the integrated manufacturing
and sales subsidiary Noritake Itron Corporation.
In addition, the U.S.-based Noritake Co.,
Inc. and three other subsidiaries conduct sales
for the Ceramics & Materials Group in overseas
markets. KCM Corporation undertakes direct
sales of most of its own products both in Japanand overseas.
Moreover, the Company’s associate, Kuraray
Noritake Dental Inc., engages in the manufacture and sale of dental-related products.
ENGINEERING SEGMENT
In the Engineering Segment, the Company
manufactures segment products. Various typesof industrial furnaces are produced and supplied to the Company by the subsidiary
Noritake TCF Co., Ltd. The Company’s
Taiwanese subsidiary Noritake Taipei Co., Ltd.
manufactures and supplies static mixers to theCompany.
Sales activities in Japan and overseas areundertaken by the Company and one of its
subsidiaries. In addition, the U.S.-based
Noritake Co., Inc. and another subsidiaryconduct sales for the Engineering Segment inoverseas markets.
TABLETOP SEGMENT
In the Tabletop Segment, in addition to theCompany’s production activities, porcelaintableware is manufactured by Noritake Lanka
Porcelain (Private) Limited located in Sri Lanka
and one associate, which is supplied to theCompany.
The Company conducts sales for the
Tabletop Segment in domestic and overseas
markets. In addition, the U.S.-based Noritake
Co., Inc. and three other subsidiaries undertake
sales in overseas markets.
Service operations in other areas are handled
by Noritake Garden Co., Limited and one
associate.
The Company is in the process of liquidating
Noritake Canada Limited.

Net Sales &Overseas Sales Ratio
Net sales (Millions of yen)Overseas sales ratio (%)
109,631108,808

37.0

37.8

39.1

’15

’16

’17

99,038

Ordinary Income

Ordinary income (Millions of yen)

4,780

4,861

’16

’17

3,389

’15

Profit Attributable to
Owners of the Parent &Net Income Ratio
Profit Attributable to Ownersof the Parent (Millions of yen)
Net income ratio (%)
4,413

4,107

4.0

3.8

’16

’17

2,059
2.1

’15

15

Net Income per Share
(Yen)

307.3
286.1

14.34

’15

’16

’17

The Company conducted a reverse
stock split at a ratio of one share forevery ten shares on October 1, 2016.
Figures for net income per share arepresented on the assumption that theCompany conducted the reverse
stock split at the beginning of theprevious fiscal year (April 1, 2015).

PERFORMANCE ANALYSIS
Consolidated net sales fell ¥822 million, or
0.8%, year on year to ¥108,808 million.
Ordinary income increased ¥81 million fromthe previous fiscal year to ¥4,861 million mostly
due to increased earnings in associates
accounted for by the equity method.
Extraordinary income totaled ¥782 million,
with gain on sales of investment securities
amounting to ¥765 million. Extraordinary losses
came to ¥380 million, with disposal loss of fixed
assets totaling ¥297 million.
As a result of the aforementioned, profit
before income taxes for the fiscal year underreview amounted to ¥5,263 million. Afteraccounting for income taxes and non-controlling interests, profit attributable to owners of theparent totaled ¥4,107 million.
Additionally, net income per share increasedto ¥286.12 and the return on equity fell from
5.7% in the previous consolidated fiscal year
to 5.1%.

Total Assets(Millions of yen)

145,836
135,932

’15

16

’16

142,362’17

CASH FLOW ANALYSISAs of March 31, 2017, cash and cash equivalents stood at ¥8,910 million, a year on year
increase of ¥326 million. For the year, negative
free cash flows amounted to ¥6,582 million.
Net cash provided by operating activities
increased ¥3,014 million year on year to ¥9,128
million. Profit in associates accounted for withthe equity method amounted to ¥751 million
in fiscal 2017. Operating cash flow improved
as we recorded ¥5,263 million in profit before
income taxes and ¥4,026 million in
depreciation.
Net cash used in investing activities
decreased ¥1,482 million year on year to¥2,546 million. Factors included ¥3,382 million
in purchase of property, plant and equipment
and intangible assets that was only slightly offset by ¥1,107 million in proceeds from sales ofinvestment securities.
Net cash used in financing activities
increased ¥2,066 million year on year to ¥5,974
million. Cash flows used in financing worsened
due to repayments of borrowings leading to adecrease of ¥3,047 million in short-term borrowings and ¥1,994 million in long-term borrowings in addition to dividend payments of¥869 million.
FINANCIAL POLICIESThe Noritake Group, in principle, funds general
operations and capital expenditures throughinternal reserves and borrowings or the issue ofcorporate bonds. In particular, working capitalfor general operations is provided by short-termborrowings with a maturity of one year or less.
In Japan, Noritake has adopted a cash management system under which the Company
centrally procures funds and then allocates the
procured funds to consolidated subsidiaries inneed of operating funds. Overseas, individual
consolidated subsidiaries adhere to a basic
policy of procuring operating funds themselvesin their respective local currencies.
As of March 31, 2017, the balance of shortterm borrowings totaled ¥9,671 million, most ofwhich is denominated in yen, with the remainder in two other currencies. Noritake, in principle, uses its internal reserves for capital
expenditures and other long-term investmentswith a portion covered by long-term debt. As of
March 31, 2017, the balance of unsecured
long-term loans amounted to ¥13,464 million,
most of which is denominated in yen, with theremainder in two other currencies.

BUSINESS AND OTHER RISKS
Raw Material and Fuel Price Risk
The Noritake Group conducts operations centered on the ceramic manufacturing industry.
Like other industries, the ceramics industry is
subject to manufacturing cost increases attributable to the rise in raw material and fuel prices. While continually working to improve
productivity and reduce costs, Noritake is strategically implementing upward revisions of its
product prices to compensate for such cost
increases. However, in the event that theCompany cannot carry out effective measures

NORITAkE CO., LIMITEd

Annual Report 2017to deal with sudden cost increases, its business performance and financial position may
be adversely affected.
Exchange Rate Fluctuation Risk
The export ratios of the Ceramics & Materials
Group and the Tabletop Group are high in comparison to Noritake’s other business segments.
Accordingly, unfavorable trends in currency
exchange rates—more specifically, the yen’s
rapid appreciation—may negatively impact theperformance of these business segments, and,
consequently, the entire Company’s performanceand financial position, despite the Company’s
best efforts to minimize risk through forward
exchange contracts and other measures.
Disaster Risk
With business bases in Japan and overseas,
the Noritake Group is taking steps to build up
an effective disaster management system by,for example, setting up relevant guidelines,
rules and procedures. In the event that thesebusiness bases, particularly manufacturingbases, are damaged by earthquake, fire orother disaster, their operations may have to besuspended for a certain period of time, and thiswould adversely affect Noritake’s business performance and financial position.

as the electronics, semiconductor and energy
industries. These industries are characterized
by the rapid pace of their technological innovation and dynamic demand fluctuations, whichcause participants to experience technology
and product obsolescence at shorter intervals
than other industries. Accordingly, in the eventthat any of the Noritake’s main products
becomes obsolete, or Noritake fails to launch
new products in a timely manner, its businessperformance and financial position may be negatively affected.
Risks and factors that could have adverse
effects on the Noritake Group’s business performance and financial position are not limited tothose described above. The analysis of risks
is based on information available to theCompany’s management as of March 31, 2017.

Capital Ratio
(%)

54.1

’15

56.5

’16

59.0

’17

Return on Equity
(%)

5.7
5.1

2.8

’15

’16

’17

Overseas Risk
The Noritake Group is actively promoting overseas operations. Deteriorations in public safety
and security, coupled with changes in politicalconditions, in one of the countries where
Noritake operates may restrict the Company’s
operations. In particular, in the case of war, civil
disturbance, terrorist attack and the like, theCompany’s operations may have to be suspended for a certain period of time. Should thisbe the case, the Noritake Group’s businessperformance and financial position may be negatively impacted.
Technology-Related Risk
The Noritake Group is increasingly concentrating
its management resources in such growth fields

NORITAkE CO., LIMITEd

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RepoRt of Independent AudItoRs

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Noritake Co., Limited

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oVeRseAs netwoRk

MeMbeRs of the boARd,
AudIt & supeRVIsoRY
boARd MeMbeRs And
eXeCutIVe offICeRs(As of June 29, 2017)(As of June 29, 2017)

iNdUStriaL ProdUCtS GroUPNORITAKE CO., INC.
4990 ALLIANCE DRIVE, MASON, OH 45040, U.S.A.
Tel: 1-513-234-0770(ATlANTA BRANCh)
490 Sun Valley Drive, Suite #102, Roswell,
GA 30076 U.S.A.
Tel: 1-770-518-8233
NORITAKE EuROpA Gmbh
KURHESSENSTRASSE 3, D-64546
MOERFELDEN-WALLDORF, GERMANY
Tel: 49-6105-2092-44
NORITAKE ShANGhAI TRADING CO., lTD.
ROOM 701 AETNA TOWER NO. 107,ZUN YI ROAD, CHANG NING DISTRICT,SHANGHAI, 200051, CHINA
Tel: 86-21-6237-5667(GuANGZhOu BRANCh)
2510, GOLDLION DIGITAL NETWORK CENTER,
138 TIYU ROAD EAST,GUANGZHOU 510620, CHINA
Tel: 86-20-3877-2253(DAlIAN BRANCh)
22K, INTERNATIONAL FINANCE BUILDING, No.15
RENMIN ROAD ZHONGSHAN DIST. DALIAN
116001, CHINA
Tel: 86-411-825-06065
NORITAKE SA (ThAIlAND) CO., lTD.
(BANGKOK OFFICE)
222 VORAVIT BUILDING 9TH FL., UNIT B
SURAWONG ROAD, SIPRAYA, BANGRAK,BANGKOK 10500, THAILAND
Tel: 66-2-235-1688
DIA RESIBON (ThAIlAND) CO., lTD.
1/1 Moo 5, Rojana Industrial Park, Zone E,
Tambol U-Thai Amphur U-Thai,
Ayutthaya 13210, THAILAND
Tel: 66-35-741-660-5
SIAM COATED ABRASIVE CO., lTD.
AMATA CITY INDUSTRIAL ESTATE 7-126 MOO4,
T. MABYANGPORN, A. PLUAKDAENG,RAYONG 21140, THAILAND
Tel: 66-3-865-0150
CeramiCS & materiaLS GroUPNORITAKE CO., lIMITED(TAIpEI OFFICE)
7F-2, NO.46, SEC-2,
CHUNG SHAN N. RD., TAIPEI 104,
TAIWAN, R.O.C.
Tel: 886-2-2531-9906
ITRON (u.K.) lIMITEDVANTAGE HOUSE, HARFREYS ROAD,
HARFREYS INDUSTRIAL ESTATE,GREAT YARMOUTH, NORFOLK, NR31 0LS,
UNITED KINGDOM
Tel: 44-1493-601144

rePreSeNtative direCtor
hitoshi tanemura
PreSideNt &rePreSeNtative direCtor
tadashi ogura

eNGiNeeriNG GroUP

rePreSeNtative direCtor

NORITAKE CO., INC.
2635 CLEARBROOK DRIVE,
ARLINGTON HEIGHTS, IL 60005, U.S.A.
Tel: 1-847-439-9020
NORITAKE TAIpEI CO., lTD.
NO. 37 ALLEY 105, LANE 514,
ZHONGZHENG RD., XINZHUANG DISTRICT,NEW TAIPEI CITY 242, TAIWAN, R.O.C.
Tel: 886-2-2907-1221
taBLetoP GroUPNORITAKE CO., INC.
15-22 FAIR LAWN AVENUE,
FAIR LAWN, NJ 07410, U.S.A.
Tel: 1-201-796-2222

viCe PreSideNt &hiroshi kato
direCtorS
hisaya ogura
kozo kato
kosaku Yamada
tetsuo komori
AuDiT & supERvisORy
BOARD MEMBERs

NORITAKE EuROpA Gmbh
KURHESSEN STRASSE 3, D-64546
MOERFELDEN-WALLDORF, GERMANY
Tel: 49-6105-2092-18

Satoshi aoki

NORITAKE lANKA pORCElAIN (pRIVATE)lIMITEDWARAKAMURA, MATALE, SRI LANKA
Tel: 94-66-2244130

tatsuhiko Saruwatari(NORITAKE CITY STORE)
77, DHARMAPALA MAWATHA,COLOMBO 7, SRI LANKA
Tel: 94-11-2301334
NORITAKE (AuSTRAlIA) pTY lTD.
UNIT 4, 153 BEAUCHAMP ROAD,
MATRAVILLE, N.S.W. 2036, AUSTRALIA
Tel: 61-2-9316-7123(NEW JERSEY BRANCh)
15-22 FAIR LAWN AVENUE, FAIR LAWN,
NJ 07410, U.S.A.
Tel: 1-201-475-5200

NORITAKE ShANGhAI TRADING CO., lTD.
ROOM 701 AETNA TOWER NO. 107,ZUN YI ROAD, CHANG NING DISTRICT,SHANGHAI, 200051, CHINA
Tel: 86-21-6237-5789

NORITAKE SCG plASTER CO., lTD.
NO. 32 MOO7 NONGPLAKRADI ROAD,NONGPLING, NONGKHAE,SARABURI, 18140, THAILAND
Tel: 66-36-373578

ChairmaN &NORITAKE EuROpA Gmbh
KURHESSENSTRASSE 3, D-64546
MOERFELDEN-WALLDORF, GERMANY
Tel: 49-6105-2092-0

NORITAKE CO., INC.
2635 CLEARBROOK DRIVE,
ARLINGTON HEIGHTS, IL 60005, U.S.A.
Tel: 1-847-439-9020(lOS ANGElES BRANCh)
21081 SOUTH WESTERN AVENUE,SUITE 180 TORRANCE, CA 90501, U.S.A.
Tel: 1-310-320-1700

MEMBERs OF THE BOARD

Naoyuki Shiraishi
ryuichi murata

ExEcuTivE OFFicERs
tadashi ogura*hiroshi kato*
hisaya ogura*kozo kato*
kenichi horaguchi
akira higashiyama
kenji ito
Seiya ogata
koji ogawa
koji Sato
Seiji ishidaakira Nagata
masahiko horie
hiroshi Yorita
Shuji Shite

pT. NORITAKE INDONESIABLOK A-II NO. 9A, KAWASAN BERIKAT,
KOTA BUKIT INDAH, PURWAKARTA 41181,
JAWA BARAT, INDONESIA
Tel: 62-264-351311* Also hold the position of director

58

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annual report 2017

C o R p o R At e d AtA

h I s t o R Y o f n o R I tA k e(As of June 29, 2017)(As of June 29, 2017)

heAd offICe

1876 Ichizaemon Morimura established3-1-36, Noritake-Shinmachi
Nishi-ku, Nagoya, Aichi
451-8501, Japan
Tel: +81-52-561-7111
Fax: +81-52-561-9721

dAte of estAblIshMent
January 1904

Morimura-kumi in Tokyo, and Toyo
Morimura and others establishedthe Hinode Shokai (Morimura Brothers)
in New York1904 Established Nippon Toki Gomei Kaisha
1907 Began production of grinding wheels forin-house use

1914 Succeeded in production of the firstdinner set in Japan

nuMbeR of eMploYees
5,097 (Consolidated)

1917 Sanitary ware division spun off tobecome TOTO Ltd.
Established Nippon Toki Co., Ltd.

1919 Electric insulator division spun off to
stoCk eXChAnge lIstIngs

become NGK Insulators Ltd.

1932 Began production of first bone china

Tokyo Stock Exchange
Nagoya Stock Exchange

in Japan1939 Began full-scale production of industrial
AdMInIstRAtoR of shAReholdeR
RegIstRY
Mitsubishi UFJ Trust and Banking
Corporation
4-5, Marunouchi 1-chome,
Chiyoda-ku, Tokyo

grinding wheels

1943 Tableware production stopped on
account of World War II, changed to fullproduction of grinding wheels(only bone china production continued
to preserve technique)1945 Production of tableware resumed

100-8212, Japan

1947 Established Noritake Co., Inc. in

AnnuAl MeetIng of
shAReholdeRs
The annual meeting of shareholders of theCompany is normally held in June each year
in Nagoya, Japan.

the United States

extraordinary meeting of shareholders

in Germany

1988 Established Noritake Taipei Co., Ltd. in
Taiwan1993 Opened the Noritake Gallery
1995 Established Pt. Noritake Indonesia
1997 Established Itron (U.K.) Ltd. in
the United Kingdom

2002 Established Noritake Bonded
Abrasive Co., Ltd.

2005 Established Noritake Shanghai Trading
Co., Ltd.

2009 Made Nippon Resibon Corporation its
associate by acquiring additional sharesof the stock of the company.
Absorbed Noritake Engineering Co.,
Ltd., Noritake China Mfg. Co., Limited,
Noritake Tableware Co., Ltd. and Tokyo
Toishi Co., Ltd.

2010 Absorbed Noritake Kizai Co., Ltd. and
Noritake Ceramics Co., Ltd.

2011 Absorbed Noritake Bonded Abrasive
Co., Ltd. and Noritake Super Abrasive
Co., Ltd.
Established Noritake SA (Thailand) Co.,
Ltd. in Thailand

2012 Made KCM Corporation its wholly-owned

1956 Began production of cutleryware

subsidiary via a stock swap

1958 Established Noritake (Australia) Pty. Ltd.

Established Noritake Abrasives (Suzhou)Co., Ltd. in China

in Australia

1960 Began production of resinoid grinding
wheels at the Kamori Plant

In addition, the Company may hold an1987 Established Noritake Europa G.m.b.H.

1961 Began production of crystal glassware

2014 Made Nippon Resibon Corporation its
consolidated subsidiary by acquiring
additional shares through a tender offer

Began production of melamine ware

whenever necessary by giving at least two

1962 Began production of grinding machines

weeks’ advance notice to shareholders.

1963 Began production of belt andIndependent AudItoRs

1969 Began production of electronic products

fabric abrasives

KPMG AZSA LLC

1970 Began production of fine ceramic industrial products

1971 Began production of filtration equipment
1972 Established Noritake Lanka Porcelain(Private) Ltd. in Sri Lanka

1973 Began production of diamond tools
1979 Began operation of the Craft Center
Began production of materials andequipment for the ceramics industry

1981 Changed the Company name to
Noritake Co., Limited

Caution with respect to forward-looking statements
This annual report includes forward-looking statements pertaining to expectations, plans, strategies, management goals, future performance,
expenses, revenues, income and other forecasts formulated on past experiences. Forward-looking statements necessarily entail some degree of
uncertainty, and the content conveyed in the results as well as underlying factors identified in the report may differ materially from actual results
depending on changes in those factors.
Noritake Co., Limited

annual report 201759

Printed in JaPan